CANADA STOCKS-TSX surges higher on energy, miners

Thu Nov 18, 2010 6:10pm EST

* TSX up 212.18 points, or 1.68 percent, at 12,870.01

* Nine of the 10 main groups advance

* Energy sector up 2.2 pct, materials up 2.3 pct (Updates with analysts comments, details)

By Solarina Ho

TORONTO, Nov 18 (Reuters) - Toronto's main stock index was bolstered by surging energy and mining issues on Thursday, while easing worries over Ireland's debt crisis and strong interest in General Motors' IPO helped power market optimism.

Suncor Energy (SU.TO) was the biggest market mover, climbing 3.9 percent to C$34.90, in step with oil prices that rebounded more than 2 percent after this week's losses. The heavyweight energy sector jumped 2.2 percent.

Commodity prices bounced back from big selloffs, with Toronto's resource-heavy market profiting from the gains. The materials group, home to miners, climbed 2.3 percent, with base-metals miner Teck Resources (TCKb.TO) gaining 3.3 percent to C$50.29.

Copper prices recovered from some of this week's slide, climbing nearly 3 percent while gold advanced more than 1 percent, halting its longest period of consecutive declines in nearly half a year. [MET/L] [GOL/]

Fertilizer giant Potash Corp (POT.TO), which announced plans this week for a stock buyback worth up to $2 billion, rose 3.15 percent to C$143.53.

"The bounceback in the commodities stocks was long overdue," said Maison Placements Canada president, John Ing, noting that fears that demand China would retreat were overblown.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE closed up 212.18 points, or 1.68 percent, at 12,870.01. Nine of the index's 10 main groups were higher with the consumer discretionary sector the lone decliner, off 0.07 percent.

"Just when you think things are about to go off a cliff and you're in a grumpy mood, the market turns around and goes higher," said Barry Schwartz, portfolio manager at Baskin Financial Services.

"Everything is recovering to pre-recession levels."

Investors jittery about the euro zone's sovereign debt problems were relieved by expectations Ireland will likely receive a multibillion-euro loan from European partners and the International Monetary Fund. [ID:nLDE6AH0HV]

"Ireland -- it appears that the hand wringing is over. Looks like they're going to get a bailout like Greece. Unfortunately, just throwing more money just postpones the problem," said Ing.

Financial stocks gained 1.71 percent, lead by Royal Bank of Canada (RY.TO), which rose 2.15 percent to C$54.28. Toronto Dominion Bank (TD.TO) climbed 1.66 percent to C$74.24.

General Motors' (GMMu.TO) successful initial public offering also helped lift the overall market mood. The IPO represents the last step of the automaker's government bailout in 2009 and its restructuring. [ID:nN18285952]

($1=$1.01 Canadian) (Editing by Rob Wilson)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.